What follows is the sequence of events between April 2008 and October 2011 in Jon Atkin’s quest to find funding from local banks for his solar panel installation business.
Jon Atkin is founder and president of Bucks County Clean Energy located in Doylestown PA.
This event sequence was written by Jon Atkin himself.
April 2008
I started to write a business Plan for $5 million to start a Solar Company
May 2009
Took the Business Plan to all the Banks I could think of , there was no interest
November2009
Took the Business Plan to all the Politicians I new, they were impressed but were not able to help
December 2010
Sent 16 people to solar school in Philadelphia , under employed and unemployed contractor friends, With the help of the WIB and Congressman Patrick Murphy
March 2010
Met with Univest Bank in Doylestown
They seemed impressed and more importantly interested in funding me.
$5million was too high
I rewrote it for $3.2 million
Still too high, I rewrote in for $750,000, Univest liked this much better.
The $400,000 of $750,000 would have finished a LEED Building on my property for an office.
Over the next weekend I thought about borrowing the money to finish a building on my property, the $400,000 , I decided until I had signed contracts I was going to hold off on borrowing the $400,000,
I told the Bank the next week and they were very impressed that it was a good business choice.
To recap I came down from $5 million to $350,000, I was satisfied, the Bank was happy, it had my shore house as collateral, and an SBA guarantee of 95%.
And it was investment for them in a new industry that had been doing fantastic in NJ for the preceding 6 years.
NOTE The loan was an SBA guarantee of 95% and I own a Home on the Jersey shore that was almost paid for so they were well collaterized.
June 1st 2010
I was called to the bank to sign the papers for the credit line/loan, At the end I received a statement of account that $100,000 was being put into my account,
I was surprised I thought I had been approved for $350,000. I asked Mr. Beamer to explain, he said when you need some more money give me a call.
My wife was present, as we left feeling very happy we could now get our new Company off the ground, Mr Beamer said a he would need a couple of days notice for the paperwork.
FYI, I had sent 16 Under employed/unemployed construction workers to Solar School (1 month course) in Philadelphia December of 2009 with the Help of the WIB and Congressman Patrick Murphy.
May 2010
I hired 5 people to get the company going, bought some cell phones new computer etc.
August 2010
Went Back for some more money beginning of August, received an e-mail from Univest with information asking to see signed Contracts/ we did not have any.
Univest already had a Solar Contractor `Mirarchi Bros Electrical` who had done some solar.
Univest also invests in Commercial Projects so they are fully aware it can take a year to build a project , and many Solar projects are put out to bid a couple of times.
We were bidding commercial solar projects during 2010 we bid approx $100 million in Solar projects
Why did the Bank pull my funding?
If as they stated I had to have signed contracts, why was I not told that BEFORE I was loaned the money, why did`nt the Bank bother to make an effort to clearly explain to me in writing their expectations, instead of waiting until after the first draw was spent.
September 2010
Met with 2 bank Officials, they had no viable explanation for me except tough on me.
HOLY@#$$%^7
I started a business based on the intent and expectation the Bank had set up for me.
January 2011
We have laid everybody off, or are working for no paycheck with expectancy of money when we book some work.
We are lowest bidder on Chestnut Street Garage Solar Car Port, $430,000 Project with the West Chester PA Municipality,
We are working in impossible conditions due to the bank pulling our funding
April 2011
Received notice from West Chester we are awarded the Job $430,000
October 2011
Due to start construction of the Chestnut Street Garage Solar Project for $430,000
Jon concludes his story by asking a question: “What could we have accomplished as a Company if our funding had not been pulled?”
Final note from Jon: ” Buck County Clean Energy is also certified to install Solar in NJ residential and commercial, but only focused on PA due to virtually no funds, and now the PA solar market crashed we cannot afford to grow into the Jersey market!!!”
